Atasu - Alashankou

Atasu - Alashankou crude oil pipeline construction project is unique both because of its scale and complexity, and invaluable experience gained by our company during its implementation.

First of all the financing issue was successfully settled.

Foreign loans were attracted, besides from own capital formed by the founders. In December 2004, through the tender which involved the largest international banks, we received loans by was of issuing Eurobonds for the total amount of $600 mln. Their placement was arranged by JP Morgan Bank.

We attracted a number of domestic and foreign companies as contractors. Thus, Kazakh Institute of Oil and Gas JSC performed design and supervision. According to the project, the pipeline route starts from Atasu pump station in Karaganda region to Alashankou terminal station in Xinjian province of China.

The pipeline, 965 km long, passes through the territory of Karaganda, East-Kazakhstan and Almaty regions of Kazakhstan. During construction it was decided to use subsurface laying method of pipe with diameter of 813 mm and wall thickness from 7.9 to 11.9 mm.

Atasu - Alashankou

The construction of Atasu - Alashankou pipeline was attended by the best Kazakh and Chinese experts.

Considering very tight schedules, 2900 specialists, including: project developers, technical consultants and inspectors, builders, representatives of the Client and more than 1350 heavy machinery and equipment were involved at the peak of construction. The pipeline route often crossed very difficult terrain - sands (more than 100 km), marshlands (about 62 km), rocky soil 263 km ( of which about 42 km category 8 and 9). The average burial depth of the pipe along the whole length of the pipeline is 2.5 m. Severe weather conditions - significant temperature drops, constant strong winds, high level of flood and rain waters created additional problems. The constructors built 3 railway crossings, 17 category IV highway crossings and 14 river crossings.

Technology

Polyethylene coating

Thickness 3.2 mm

Adhesive

Thickness 170 nanometers

Epoxy powder

Thickness 120 nanometers

Steel pipe (steel Х60)

Diameter 813 mm, wall thickness 11.9 mm

World record

Thanks to the coordinated and dedicated work of all project participants the 1000 km pipe was completed in record time. Under the supervision of the Kazakh contractor–“NGSK KazStroyService”, using the automatic CRC complex, the absolute world record was set for welding of steel joints – 261 joints within one daylight period.

813 mm

Pipe diameter

965 km

Pipeline length

Development milestone

In July 2006 the State Comission accepted the Atasu-Alashankou pipeline, and in November 2008 PS-9 was launched and reached the design capacity – 10 mln. tons of oil a year

In December 2011 PS-11 was launched and Atasu-Alashankou pipeline reached the design capacity – 12 mln.tons of oil a year

In December 2013 PS-8 and PS-10 were launched and Atasu-Alashankou pipeline with a capacity increase reached – 20mln. tons oil a year

Strategic importance

Nursultan Nazarbayev, President of the Republic of Kazakhstan, named the Atasu - Alashankou crude oil pipeline “the pinnacle of investment cooperation between China and Kazakhstan” and noted that “it is the first world-class export pipeline built by independent Kazakhstan. Its operation will ensure significant growth of tax inflows to the state and local budgets, increase the export and transit potential of the country providing employment opportunities to the local population”.

Atasu - Alashankou pipeline project involved:

2900

Specialists

1350

Various machines and mechanisms

850 mln$

Cost of the project

Design capacity

In December 2006 PS-9 was launched and Atasu - Alashankou pipeline reached the design capacity of the first stage - 10 mln tons a year.